What is a personal credit report?

The report consists of four types of information. First, identifying information is listed at the top of the report, such as name, last reported address, social security number, date of birth, and previous address. Next is a listing of the persons personal credit information including credit account numbers, the creditors name, the amount of last payment, the credit limit of the account and the timeliness of monthly payments. Third, on some reports there is a listing of public record information. This includes state and federal tax liens, civil judgments and all versions of bankruptcies. Finally, there is an inquiry section which notes all those creditors which have reviewed a copy of their credit file. This section is very important to consumers to review when they receive a copy of their report because it serves as an audit trail to insure no unauthorized parties have accessed their report over the last two years.

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What is a RMCR credit report?

The report consists of four types of information. First, identifying information is listed at the top of the report, such as name, last reported address, and address's going back two years, marital status, social security number, date of birth, spouses name, number of dependents, and two years employment history. Next is a listing of consumer's credit information including credit card account numbers, the creditor's name, the amount of last payment, the credit limit of the account and the timeliness of account payments. Third, on some reports there is a listing of public record information. This includes federal and state tax liens, civil judgments, bankruptcies, and in some cases divorce information. Finally, there is an inquiry section which notes all those creditors which have reviewed a copy of the credit file. This section goes back 90 days from the date the report was requested. This section is very important for consumers to review when they receive a consumer copy of their report because it serves as an audit trail to insure no unauthorized parties have accessed their file. Also, this section is very important for underwriters to see if any new accounts have been established in the last 90 days.

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How accurate is the information in a credit report?

The major goal of AAA American Credit Bureau is to insure maximum possible accuracy of credit information provided to credit grantors. AAA American Credit Bureau has a vested interest in the accuracy of the information reported to it's mortgage companies. The less accurate the information, the less value it is to those who grant credit. Considering the enormous volume of credit information that is transmitted in the United States--two billion pieces of information about consumer trade activities are entered into consumer credit records each month--the industry has an extraordinary record of accuracy.

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Is customer service a priority for AAA American Credit Bureau?

Yes. AAA American Credit Bureau believes consumers have a right to responsive service when checking and verifying their credit file. Also, AAA American Credit Bureau stands behind it's guarantee of customer service by offering to the mortgage industry a customer service guarantee or the report is free. What that means to the mortgage industry is AAA American Credit Bureau will service all of their credit needs fast and efficient and do the best job verifying and reverifying inaccurate information. In other words, we put our money where our mouth is!

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How can a consumer correct an error in his or her file?

If an error has cropped up in a consumer's credit report, the credit bureaus should be notified immediately (i.e. TRW, TU, EQUIFAX). The fair credit reporting act, the federal law that regulates credit reporting activities, outlines the steps to be taken in the investigation of any possible inaccuracies. The credit repository will verify the item in question with the creditor at no cost to the consumer. The credit reporting repository has a policy which requires investigations be responded to by the creditor within a reasonable amount of time. (Note: a reasonable period of time is generally considered to be 30 days). After the investigation is complete, the credit reporting repository notifies the consumer of the outcome. If the information in the report has been changed or deleted, the consumer is also sent a copy of the revised report. If the reinvestigation does not resolve the dispute, the consumer should directly contact the creditor to resolve the dispute.

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How private is the information in a credit report?

The Fair Credit Reporting Act grants credit report access to companies which have a "permissible purpose". The FCRA specifies those purposes as the granting of credit, the collection of a debt, for the underwriting of insurance, for employment purposes, for issuing of a license as required by some government agencies or a legitimate business transaction between a business and a consumer. Obtaining a credit report under false pretenses, or improper use of a credit report is a violation of federal law. When privacy violations occur, the credit reporting repository notifies the appropriate law enforcement agencies.

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How long does negative information remain in a consumer's credit file?

The Fair Credit Reporting Act provides statutes of limitations on items in a credit file. Bankruptcies remain in a credit report for ten years, (seven years on an RMCR), judgments are for seven years from the date of entry. Tax liens-seven years from the date of entry or tax liens that are unpaid have no limitation. Collections, charge offs, and other adverse information will stay on a credit file seven years from last activity.

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How does Junior and Seniors credit end up on the same credit file?

Mixed credit does exist with the three major credit bureaus. A parent and a child who share the same or similar names most often develop mixed credit. This is compounded by sharing same address or by having shared a past address. (Note: whenever possible, use suffixes such as Jr., Sr., III to help separate and eliminate having wrong reported information.)

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Do credit reports contain information about a consumers race, color or creed?

Absolutely not. Credit reports do not contain any information about a person's character, lifestyle, religion, national origin, political affiliation, or sexual preferences. Also credit bureaus do not collect or transmit data on an individuals medical history.

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Why do acct numbers on a credit report sometimes differ from numbers on a credit card?

Credit companies may shorten, lengthen or scramble account numbers when reporting to credit repositories. These changes to account numbers are done strictly for security reasons on behalf of a consumer.

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Why does an account that has been paid still show with a balance on a credit report?

Most credit grantors report to repositories on a monthly or bi-monthly basis. Time requirements of creditors to report their data to the three major repositories widely varies. Time requirements that credit repositories have to add to a consumers credit report with new credit data also varies. The human factor between creditor and credit repositories may sometimes take weeks or several months to update their data. (Example: on an average a credit report reports balances approximately 30-60 days behind.)

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Are there any laws that regulate credit repositories?

The fair credit reporting act is a federal law that regulates the credit reporting industry. It states that consumers have the right to know the contents of their credit file, the right to challenge the accuracy of information and have it re-verified, updated or removed. It also limits the time negative information can be kept on a credit report and insures that only persons with permissible purpose can access a consumers credit file.

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What about credit clinics that claim they can remove derogatory credit information for a fee?

The Federal Trade Commission cautions consumers to be wary of companies that make claims regarding credit repair. Credit clinics don't do anything for consumers that consumers cannot do for themselves at no cost. In addition, credit clinics usually can't live up to their promises. Beware of any organizations that offer to create a new credit file with a new identity. Here are some warning signs to look out for when dealing with a credit clinic:

* A credit clinic that guarantees to remove accurate late payments, bankruptcies or public record information from a credit report.

* An organization that charges lots of money to do credit clean up.

* A company that asks the consumer to repeatedly write to the credit repository over and over again, month after month to re-verify data that was verified to be correct with the hope that the creditor gets tired and also possibly the creditor cannot verify within the time allotted by the Fair Credit Reporting Act.

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